“People have blamed soaring prices on the Duterte administration’s Tax Reform for Acceleration and Inclusion law, which lowers personal income taxes while raising excise levies on fuel, sweetened beverages, and ‘sin’ products, among others,” reports the Philippine Star. “The TRAIN law, like other policies, was crafted based on macroeconomic assumptions by state economists led by Duterte’s economic managers. According to the country’s policymakers, the TRAIN law has one goal: to make the tax system simpler and more fair while shifting the burden off lower-income segments toward the ultra-rich.
“But based on the Department of Finance’s estimates, which were used in crafting the TRAIN law, poor families will feel the sting of inflation more than the rich will. To note, economic assumptions are not always correct so these are reviewed and revised regularly. The DOF’s projections also show the richest 10 percent will pay more for higher excise taxes on fuel—which contributes to the price of other goods and services—given their greater oil consumption than the poor.”